Real Business Cycle Theorists Think That Most Business Cycle Fluctuations

question 38

Multiple Choice

Real business cycle theorists think that most business cycle fluctuations are caused by shocks to

• A)the production function.
• B)the size of the labor force.
• C)the real quantity of government purchases.
• D)the spending and saving decisions of consumers.

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Definitions:

Wavelength

The distance between successive crests of a wave, especially points in a sound wave or electromagnetic wave.

Sense of Color

is the capacity to perceive and distinguish between different colors, including their hues, saturation, and brightness, primarily mediated by the cone cells in the human eye.

Iris

The colored part of the eye that controls the size of the pupil and the amount of light that enters the eye.

Refraction

The bending of light as it passes from one medium to another with a different density, affecting its speed and direction.